Unable to get approved for new credit cards but my credit score is above 800

[rennigade]

Rennigade..um...isn't having good credit associated with lower borrowing costs?

smh...instead of skimming over a post, fully read it next time. You own this site...you should be better than that.

I just checked. My FICO score dropped 24 points since August from 846 to 822. That's the lowest score I've had in years. So yeah, that's what happens when you no longer have any debt.

This is why imo, credit scores are flawed. Your credit score goes down even though you're in the best position of your entire life. Its a joke.

[disneysteve]

This is why imo, credit scores are flawed. Your credit score goes down even though you're in the best position of your entire life. Its a joke.

Oh, they are absolutely flawed. That's why Dave Ramsey calls them an "I love debt" score. Your credit score says nothing about how well you're doing financially. It only reflects how you handle your debt.

My score dropped 24 points because we paid off our mortgage and are now completely debt-free. Our monthly income is $5,000 higher than our expenses. We've got a 7-figure investment portfolio and my earnings put me in the top 3-4% of earners. Does it really matter that my score dropped? Not even a tiny bit. Still, I'll miss the novelty of having an 850 score but I'll deal with it.

[scfr]

I just checked. My FICO score dropped 24 points since August from 846 to 822. That's the lowest score I've had in years. So yeah, that's what happens when you no longer have any debt.

Yep - that is what happens. It's a CREDIT score, not an "overall financial picture" score. I know you know this, and weren't surprised to see the drop. Just stating for any who think paying off your mortgage will immediately improve your credit score.

[scfr]

Hi,

I've been getting denied on credit card applications recently and told I'll get sent a letter in a week explaining why. I am not sure why I am being denied, because I always make my payments on time, carry no balances, and have a credit score above 800.

I like to open new cards to use the sign up bonus to take care of large bills like auto insurance or unexpected medical bills. I never close the cards I open and always pay off the balance immediately (minus the sign up bonus). Could that somehow be the reason why I'm being denied new credit cards, even though I have 800 credit and always pay my balances in full?

Jacques - I'm sure I'm not the only one who will be interested to hear what the letter says. I wouldn't be surprised to hear that it has something to do with the number of cards you have opened for bonuses. The credit card companies make money off of some of us, and they lose money on some of us. As much as I love a good signup bonus (and pay my balance off every month just like you do), it's not unreasonable to expect that someday the card issuers are going to tire of giving me "free money."

[jIM_MI]

I just checked. My FICO score dropped 24 points since August from 846 to 822. That's the lowest score I've had in years. So yeah, that's what happens when you no longer have any debt.

Make sure all credit scores are compared the same
A person has a FICO score
and may credit cards/websites report a Vantage score- they are NOT the same.

[disneysteve]

Make sure all credit scores are compared the same
A person has a FICO score
and may credit cards/websites report a Vantage score- they are NOT the same.

I'm using the score reported monthly on my Discover card statement. They say it's FICO and it's the same one they use every month so I'm not comparing different sources.

[jIM_MI]

I'm using the score reported monthly on my Discover card statement. They say it's FICO and it's the same one they use every month so I'm not comparing different sources.

I didn't mean to single you out, I was pointing out people (in this thread) are posting credit scores, but only you put the prefix FICO by it- there is more than one FICO score, and there is more than one type of credit score.